Everything You Need to Know About Theft Coverage in Two-Wheeler Insurance

What is Theft Coverage in Two-Wheeler Insurance?

Generally, theft coverage is a part of comprehensive two-wheeler insurance in India. The own damage cover under a comprehensive bike insurance plan compensates for the current market value (insured declared value minus depreciation) of the vehicle when it is stolen and not recovered. In case the theft is not covered under the comprehensive bike insurance plan, the insurance company may offer an add-on theft cover to enhance the protection.

Generally, theft coverage in bike insurance compensates for the following:

• Damage caused to the two-wheeler due to attempted theft and burglary
• Total loss suffered due to the bike being stolen and not recovered
• Loss of accessories declared during the bike insurance policy purchase

However, the theft coverage in bike insurance excludes the following situations:

• Theft due to the owner’s negligence, such as bike unattended or leaving the key or not taking the necessary precautions.
• Failing to lodge an FIR at the police station
• Failing to submit relevant documents
• The bike was stolen from a place that falls outside the geographical limits of the bike insurance policy.

How Does Theft Coverage Work in Bike Insurance?

Let us take an example to understand how theft coverage in two-wheeler insurance works. Suppose you are a working professional living in Pune and generally park your bike in a parking area next to your office during the day. Suddenly, one day, your bike is gone. Fortunately, you have taken a comprehensive two-wheeler insurance policy that offers theft coverage. First, you lodge a complaint at the nearest police station and then approach your insurance company non-traceable certificate to make a claim. After submitting all the relevant documents as required by the insurance company, they compensate INR 50,000 ( insured declared value minus depreciation) within 90 days. If you had opted for only mandatory cover (third-party liability insurance), you would have suffered significant financial loss.

Claim Process for Theft Coverage in Two-Wheeler Insurance

Here is a step-by-step guide to filing a theft claim:

1. File a police complaint at the nearest police station as soon as you notice the bike is stolen
2. Immediately notify your insurance company, within a day or two of the bike theft
3. Submit the necessary documents. Important documents to be submitted along with the claim form are:
   - First Information Report (FIR) copy
   - Bike insurance document
   - Two-wheeler registration certificate
   - Driving license
   - Original keys
   - Non-traceable certificate received by the Police (This may take 3 months)
4. An insurance investigator may visit the theft location for investigation and ask for additional documents. Ensure to co-operate and provide the necessary documents for the smooth processing of the claim.
5. Once your documents and claim form are verified, the insurance company compensates you (insured declared value minus depreciation ).

Important Tips to Strengthen Theft Claims

Here are some important tips to strengthen your theft claims:

1. Always take precautionary steps, be responsible and lock your bike. You can even go for a double locking system.
2. Install anti-theft devices or GPS trackers. This not only strengthens your claim but also gives you a discount on insurance costs by reducing the chances of theft.
3. Ensure to park your vehicles in secure and safe areas
4. If you have made any modifications to your bike with high-value accessories, ensure to declare them while purchasing your bike to receive the compensation for the same.
5. Opt for optional add-ons like ‘Return to invoice cover’ that compensates you with the invoice value of your bike in case of theft or total loss. You can also opt for ‘Zero depreciation cover’ so that you can get compensation for the replacement cost that does not factor in depreciation.

Comparison shopping online is one of the best ways to avail customisable bike insurance plans. At Jio Insurance Broking, you can compare bike insurance from various insurance companies on the basis of their features, add-ons and cost. The platform allows you to make the right and affordable choice that can offer complete protection to your bike in situations like theft.

Conclusion

To sum up, theft coverage in a comprehensive bike insurance policy provides a financial safety net for bike owners against the liabilities that may arise from theft. However, it is important to ensure to renew your bike insurance policy on time to enjoy continuous coverage, take precautionary actions to keep your bike safe, install anti-theft devices and GPS tracking systems to avoid the potential risk. Having comprehensive coverage offers peace of mind even in panic situations like theft. Buy comprehensive coverage for your bike and shield your valued asset.